International staffing provider Hays plc reported net fees, or gross profit, fell 7% year over year in its fiscal second quarter ended Dec. 31. However, gross profit in the US rose by 13%.

“Growth slowed markedly in December, driven by specific events in key markets: general strikes in France, tragic Australian bushfires and the UK election,” Chief Executive Alistair Cox said in a statement.

However, on a “like-for-like” basis, which represents organic growth of continuing operations at constant currency, Hays’ gross profit was down 4%.

Change in gross profit Q2 2020

Rest of world: The US is included in the company’s “rest-of-world” segment. In addition to growth in gross profit of 13% in the US, the company noted gross profit fell by 5% in Canada. The rest of world segment also includes other parts of the Americas with Mexican gross profit up 57% and Brazilian gross profit up 1%; Asia, where gross profit was flat; and Continental Europe excluding Germany where net fees fell by 1%.

Australia and New Zealand: The perm placement market slowed in December with sentiment impacted by bushfires with gross profit down 15%; temp placement net fees fell by 2%.

Germany: The company noted broad signs of reduced business confidence and more cost control by clients, particularly in the manufacturing and automotive sectors. Signs indicate weakness has begun to spread to the financial and services sectors.

UK and Ireland: Both candidate and client confidence weakened. Temp placement gross profit fell by 1% while perm placement gross profit fell by 7%.

In terms of where Hays derives gross profit, Australia and New Zealand contributed 17% of gross profit in the fiscal second quarter; Germany contributed 26%; UK and Ireland contributed 23%; and rest of world contributed 34%.

Share price and market cap

Shares in Hays closed down 3.42% Thursday at £166.70; the company had a market cap of £2.53 billion, according to FT.com.